Planning Tool -

Contents

Contents
1. Sales
2. Market
3. Production
4. Purchasing
5. Personnel Costs
6. Investments / Other Expenses
7. Financial Planning
8. Prime Costs
9. Profit and Loss Account Plan
10. Budgeted Balance Sheet
11. Liquidity
12. Data Transfer

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 1. Sales
Product Surfboard

Retail shop price (EUR/Unit) 600 €

Wholesale channel

Wholesale volume (in units) 80

Wholesaler price (EUR/Unit) 390 €

Marketing in % of sales 14%

Print advertising (Euro) 10,000 €

Sales promotion (Euro) 3,000 €

Sales Employees

No. of sales employees (total) 1.0

 2. Market
Expected Sales Figures Surfboard (in units)

Retail Shop 160

Wholesale 80
Sum 240

=> resulting in this:

Sales Turnover (in €) 127,200 € Payment ratio in % 80%

Stock of Finished Products Surfboard

Stock Inventory (current period) 4

Value per unit 285.00 €

+ Amount produced in current period 236

Cost of goods manufactured in Euro per unit 329.70 €

= Finished products available 240

Value per unit 328.96 €

Dispatch to sales 240

Closing stock of finished products 0

Storage costs per unit 10.00 €

Total storage costs - €
 3. Production
Investments

Investments in production lines in current period (€) 7,500 €

Regular Expenses

Total depreciation of production lines (Euro) 1,500 €

Total other fixed costs of production lines (Euro) 500 €
Total maintenance costs for production lines 1,000 €

Total Machinery Capacity in Units 360

=> Production line load 66%

Workers in Production

No. of production workers (total) 3.0

Production capacity

Expected capacity per worker 90

Planned production numbers 236

=> Required production line capacity 66%
=> Required No. of workers 2.6
=> Personnel workload 87%
=> Temporary workers, if necessary 0.00
 4. Purchasing
Input/Parts Fibre Hard foam Vari. prod. overhead

Quantity ordered (current period) 236 236 236

Expected purchasing price in €/unit 58 € 8€ 16 €
=> Total purchasing costs 13,688 € 1,888 € 3,776 €

+ Initial inputs on stock (curr.per.) 0 0

Value per unit - € - €

= Disposable parts 236 236

Value per unit (average value) 58 € 8€

- Dispatch to production 236 236

= Closing inputs on stock 0 0

Input stock value - € - €

Storage costs per unit 4€ 4€

Total storage costs - € - €

Employees in Purchasing

Planned No. of Purchasing / Admin. employees (total) 0.5

 5. Personnel Costs
Purch./Admin Sales Production Sum

Personnel - Opening balance 0.5 1.0 3.0 4.5

Wages/Salaries 5,500 € 11,000 € 33,000 € 49,500 €

Hiring / Lay-off costs - € - € 8,000 € 8,000 €
Non-wage personnel costs 1,155 € 2,310 € 6,930 € 10,395 €
Total personnel costs 6,655 € 13,310 € 47,930 € 67,895 €

Non-wage personnel costs in % (all employees) 21.0%

Wages / Salaries Purch./Admin. Sales Production

Salaries per period per empl. (EURO) 11,000 € 11,000 € 11,000 €

Hiring / Lay-Off Costs Purch./Admin. Sales Production

Hiring costs / employee 4,000 €

No. of new employees 2.0
Lay-off costs / employee 1,000 € Sum
No. of laid-off employees 8,000 €

Temporary Workers

Salaries for temporary workers per period 25,000 €

=> resulting in this:
Costs to incur for temporary workers - €
 6. Investments / Other Expenses
Office Equipment

Depreciation of office equipment (in Euro) 500 €

Regular Expenses

Rental costs and overheads (in Euro) 7,400 €

Administration costs (= 1.000 € + 1% of turnover) 2,272 € 1% of turnover

Depreciation ESE* 63 €
*Expenditure for Start-up and Expansion

Extraordinary income - €

Extraordinary expenses - €

Investment in Research and Development (R&D)

Investment in R&D 15,000 €

 7. Financing
Venture capital investments

Venture capital investments in current period - €

Loans in current period

Interest Interest rate
Short-term loans 704 € 5.0%

Subsidised loans 10,000 € 400 € 4.0%

Overdraft 1) - € - € 7.0%
1)
Cash flow must not be lower than 2,000 €. (If cash flow deficit occurs the input field turns red)

Securities

Purchase of interest-bearing securities - € 2.0%

 8. Prime Costs
This calculation of prime costs does not take interest expenses into account.

Changes in inventory (stock level) (per unit in €) Surfboard 2)

Calculation of
Input/Parts 66.00 € Production overhead (over-all): 18,527.33 €
+ Variable production overhead costs + 16.00 € + Hiring/Lay-off costs in production
= Direct material costs ( I ) = 82.00 € + ESE (divided by the no. of workers in production)
Direct material costs 1) 169.19 € + Depreciation of production lines
+ Production overhead2) + 78.51 € + Vari. prod. overhead and depr. of office equipment (divided by no. of employees)
= Production costs ( II ) = 247.70 € + Other overhead costs in production and maintenance
+ Other administration costs (divided by no. of workers in production)
= COST OF GOODS MANUFACTURED ( I + II ) = 329.70 € + Interest on long-term loans

+R&D + 93.75 €
+ Advertising / Sales Promotion + 81.25 € 3)
Calculation of
+ Sales overhead costs 3) + 97.40 € Sales overhead (over-all): 15,584.44 €
+ Purchasing/Admin. overhead costs 4) + 51.20 € + Salary and non-wage personnel costs (Sales) + Hiring/Lay-off costs
= PRIME COSTS = 653.30 € + Vari. prod. overhead and depr. of office equip. (divided by no. of employees)
+ Other administration costs (divided by no. of sales staff)
1)
Wages/Salaries + Non-wage personnel costs *) see right ! + ESE (divided by the no. of sales staff)
+ Storage costs for finished products

4)
Calculation of
Purchasing overhead (over-all): 8,192.22 €
+ Salary and non-wage personnel costs (Purchasing) + Hiring/Lay-off costs
+ Vari. prod. overhead and depr. of office equipment (divided by no. of employees)
+ Other administration costs (divided by no. of purchasing staff)
+ ESE (divided by the no. of purchasing staff)
+ Storage costs for inputs
+ Interest on short-term loans

Proportion of purchasing staff to total no. of employees: 11.11%

Proportion of sales staff to total no. of employees: 22.22%
Proportion of workers in production to total no. of employees: 66.67%
 9. Profit and Loss Account Plan

Net sales turnover 127,200.00 €

+/- Changes in stock - 1,270.00 €
Total Operating Performance 125,930.00 €
- Inputs / Variable production overheads - 19,352.00 €
+/- Changes in inventory - €
- External expenses (for temporary workers) - €
Gross Profit 106,578.00 €
- Personnel expenses - 67,895.00 €
Wages and salaries - 49,500.00 €
Non-wage personnel costs - 10,395.00 €
Hiring / Lay-offs - 8,000.00 €
- Depreciation ESE - 63.00 €
- Depreciation - 2,000.00 €
- Maintenance expenses - 1,000.00 €
- Additional direct costs of machinery - 500.00 €
- Additional expenses - 37,672.00 €
Rent 7,400.00 €
Storage costs - €
Marketing 13,000.00 €
R&D 15,000.00 €
Other expenses 2,272.00 €
= Operating Profit - 2,552.00 €
+ Investment income + Extraordinary income - €
- Interest paid - 1,104.00 €
= Profit from Regular Business Activity - 3,656.00 €
- Taxes - €
= Net Profit / Loss for Period - 3,656.00 €

Expected tax rate 45%

Loss carried forward (tax deductible item) - 19,530.00 €

 10. Balance Sheet
ASSETS Previous period Current period

Expenditure for Start-up and Expansion (ESE) 880 817

FIXED ASSETS
Tangible assets 9,620 15,120

CURRENT ASSETS
Stock 1,270 0
Material 0 0
Finished goods 1,270 0

Trade accounts receivable 15,960 25,440

Securities 0
Cash 9,480 2,177

TOTAL BALANCE 37,210 43,554

LIABILITIES & SHAREHOLDERS` EQUITY Previous period Current period

EQUITY 23,130 19,474

Subscribed capital 35,710 35,710
Capital reserve 19,830 19,830
Retained earnings 0
Profit / Loss carried forw. -19,530 -32,410
Net profit / loss for period -12,880 -3,656

LIABILITIES 14,080 24,080

Long-term liabilities to banks (> 5 years) 14,080 14,080
Short-term liabilities to banks (< 1 year) 10,000
Overdrafts 0 0

TOTAL BALANCE 37,210 43,554

Equity ratio 62% 45%

Debt-ratio 38% 55%

% Proportion 30% 30%

Difference between Assets and Liabilities & Shareholders´ Equity:

0 0
 11. Liquidity
OPENING CASH BALANCE 9,480 €

CASH INFLOWS
Cash inflows from sales in current period 101,760 €
+ Cash inflows from sales in previous period 15,960 €
+ Sale of securities - €
+ Interest earnings - €
+ Extraordinary income - €
+ Short-term loans 10,000 €
+ Inflow of equity capital - €
TOTAL INFLOWS 127,720 €

CASH OUTFLOWS
Purchasing of inputs and variab. prod. overhead 19,352 €
+ External expenses (for temporary workers) - €
+ Personnel expenses 67,895 €
+ Other expenses 39,172 €
+ Repayment of loans - €
+ Interest expenses 1,104 €
+ Purchasing of production lines 7,500 €
+ Purchasing of securities - €
+ Taxes - €
+ Extraordinary expenses - €
TOTAL OUTFLOWS 135,023 €

Required overdraft loan - €

CLOSING CASH BALANCE 2,177 €

 12. Data transfer
Please only refresh fields for current period because only data from current period is used for simulation!!

Data for simulation Period 1 Period 2 Period 3 Period 4 Period 5 Period 6

Sales
Retail shop price (Euro) 550 € 600 € 600 € - € - € - €
Print advertising (Euro) 6,000 € 3,000 € 3,000 € - € - € - €
Wholesaler volume (Units) 0 0 20 0 0 0
Sales promotion (Euro) 4,000 € 4,500 € 4,000 € - € - € - €
Sales staff (Final No.) 1.0 1.0 1.0 0.0 0.0 0.0

Purchasing
Fiber (units) 154 103 135 0 0 0
Hard foam (units) 154 103 135 0 0 0

R&D
External expenses for R & D (Euro) 20,000 € 20,000 € 18,000 € - € - € - €

Purchase of production lines

Production lines (Units) 0 0 0 0 0 0

Staff
+ New appointments in production (No.) 1.0 0.0 1.0 0.0 0.0 0.0
- Dismissal in production (No.) 0.0 1.0 1.0 0.0 0.0 0.0

Production
Batch (units) 154 103 135 0 0 0

Finances
Subsidised loans - € - € 10,000 € - € - € - €
Securities - € - € - € - € - € - €

Planned values
Planned retail sales turnover 84,700 € 82,200 € 79,000 € - € - € - €